If I have a car on payments and they repossesed it, can they still sue me?
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If I have a car on payments and they repossesed it, can they still sue me?
Asked on December 7, 2011 under Bankruptcy Law, Mississippi
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If after repossession the car, when sold (e.g. at auction; or to a(nother) dealer for resale) brings in less money then the outstanding balance on the loan or financing, then yes, you can be sued. Pursuant to the financing agreement, you owe a certain sum of money; repossessing the car is one way the lender or financing company can get its money in the event of default, but if the car doesn't bring in enough to fully pay off everything you owe, you can be sued for the remainder.
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